When the price elasticity of supply is equal to zero..................
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Supply curve is vertical.
Price Elasticity of Supply (PES) measures how much the quantity supplied changes in response to a change in price.
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When PES = 0, it means that no matter how much the price changes, the quantity supplied remains constant.
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This is called perfectly inelastic supply.
- A vertical supply curve represents this situation — quantity supplied is fixed, and does not respond to price changes.